Consumer trend toward budget cars puts dent in pricey pickup-truck sales

Sales of pricey pickup trucks at Stellantis NV, Ford Motor Co. and General Motors Co. faltered in the first quarter, a sign that high borrowing costs are eroding Americans’ appetite for the Detroit automakers’ main profit driver.

Ram pickup sales plunged 15% to 89,417 in the first quarter, driving overall sales down 10% in the period, Stellantis reported Wednesday. Sales of F-Series trucks, Ford’s best seller, fell 10.% to 152,943 as the automaker said it delayed delivery of more than 60,000 models for extra quality checks. Since Feb. 9, the company has not shipped the electric F-150 Lightning due to an undisclosed quality issue.

Detroit automakers have been cashing in on demand for pickup trucks that can cost $100,000 with increasingly upscale features and options, from hand-tooled leather interiors to 15-inch touchscreens. At the same time, they abandoned budget sedans to pad profit margins and help fund the transition to electric vehicles.

But the highest interest rates in more than two decades are threatening to upend that strategy as consumers clamor for smaller vehicles that can fit their budget. The pickup segment has been losing market share to compact SUVs and sedans this year.

“Full-size pickups is one segment that has really been taking it on the chin over the last few years,” Charlie Chesbrough, senior economist at researcher Cox Automotive said in an interview. “Small and midsized pickups are ticking up in market share.”

Ram is in the midst of a new product rollout this year, with the 2025 Ram pickup arriving in dealerships now, and two electrified trucks coming out at the end of 2024 and the beginning of 2025. Stellantis didn’t respond to a request for comment on what drove the drop in pickup deliveries.